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Vukile Property Fund on Tuesday said it has withdrawn its bid to acquire Capital & Regional PLC, leaving NewRiver REIT PLC as the only declared suitor. Johannesburg-based real estate investment trust last month made a ‘non-binding indicative proposal’ to acquire Capital & Regional in a possible cash-share deal. The proposal was made public on Thursday last week. On Tuesday, Vukile said it had engaged with Growthpoint Properties Ltd, Capital & Regional’s largest shareholder, to evaluate the potential terms and structure of a possible offer. Growthpoint controls about 68% of Capital & Regional. Vukile said it had not been able to reach agreement with Growthpoint on the terms and structure of any possible offer and confirmed that it ‘does not intend to make an offer’. It had until June 22 to make a firm offer to Capital & Regional. NewRiver last week also said it had made a proposal to Growthpoint about a potential takeover of Capital & Regional. It confirmed at the time that it had not communicated that proposal to Capital & Regional. ‘It is intended that this would occur if Growthpoint confirms that it would be prepared to support the terms of that possible offer,’ NewRiver said at the time. NewRiver said it recognised that Capital & Regional must make its own fair and reasonable assessment of the possible offer if it is made. With a market capitalisation of £230.7 million, NewRiver said it believes that a combination with Capital & Regional would be significantly accretive to its earnings and result in a pro-forma loan to value ratio that is broadly in-line with its guidance. Shares in Capital & Regional were down 6.4% to 55.00 pence in London on Tuesday afternoon, giving the company a market capitalisation of £126.0 million. They were down 0.7% to R 14.00 in Johannesburg. Vukile stock was up 1.0% to R 14.96 in Johannesburg, translating to market capitalisation of R 16.53 billion, or about £703.6 million. Shares of NewRiver were up 0.3% to 72.50 pence in London for a £225.0 million market cap. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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